State-run firms in Karnataka incur Rs.865 crore losses: CAGMarch 15th, 2011 - 12:06 am ICT by IANS
Bangalore, March 14 (IANS) Twentysix state-run undertakings in Karnataka incurred a cumulative loss of Rs.865 crore during fiscal 2009-10, an audit report of the Comptroller and Auditor General (CAG) has said.
According to the CAG report, a copy of which was tabled in the state legislative assembly Monday, of the 75 state-run enterprises, 43 have posted a combined profit of Rs.1,411 crore during the fiscal under review.
The loss-making firms include power utilities Chamundeshwari Electricity Supply Corporation Ltd (Rs.217 crore), Gulbarga Electricity Supply Company Ltd (Rs.216 crore) and Hubli Electricity Supply Company Ltd (Rs.174 crore).
Among the profit-making majors are Karnataka Power Corporation Ltd (Rs.711 crore), Mysore Minerals Ltd (Rs.201 crore) and Hutti Gold Mines Company Ltd (Rs.125 crore).
The auditing of the state-run companies revealed that the losses were due to deficiencies in financial management, planning, project implementation and their operational functioning.
“The state public sector undertakings (PSUs) can discharge their role efficiently if they are financially self-reliant. There is a need for greater professionalism and accountability in their functioning,” the report said.
As on March 31, 2010, the state has 75 functioning undertakings and 15 non-working, with 177,000 employees.
The cumulative turnover of all the firms last fiscal was Rs.36,370 crore, which is equivalent to 12.2 percent of the state gross domestic product. Their accumulated losses were Rs.198 crore.
Investments, including capital and long-term loans made in 90 state-run enterprises was Rs.54,231 crore as on March 31, 2010.
The state government contributed Rs.8,114 crore towards their equity, loans and grants/subsidies during last fiscal.
- CAG unravels Rs.14,000 crore cost overruns in hydro projects - Aug 31, 2012
- Fifteen Himachal PSUs in red, cumulative losses of Rs.1,660 crore - Mar 22, 2012
- State-run TSL making losses for 20 years - Aug 23, 2011
- Over Rs.61,600 crore in net worth of public sector firms eroded - Aug 18, 2011
- BHEL quarterly net profit rises 13 percent - Jul 26, 2012
- Am aware of Air India's woes, solution soon: PM - Jun 30, 2011
- Chhattisgarh power firm rapped for delayed projects - Mar 29, 2011
- 'CAG to audit accounts of Delhi discoms' - Mar 12, 2012
- BEML posts Rs.14 crore net loss in Q4 of 2011-12 - May 31, 2012
- BEL records marginal sales growth in 2011-12 - Apr 02, 2012
- Government to raise Rs.4,000 crore by selling stake in SAIL (Lead) - Jul 20, 2012
- MTNL Q3 loss drops to Rs.671.04 crore - Feb 11, 2011
- Neyveli Lignite denies fraud charges - Jul 05, 2011
- Karnataka fails to spend budgetary funds, says CAG - Jul 01, 2010
- CAG pulls up Coal India for avoidable expenditure - Sep 04, 2012
Tags: audit report, cag report, corporation ltd, cumulative loss, electricity supply company, equity loans, gold mines, gross domestic product, hubli, legislative assembly, long term loans, management planning, mysore, planning project, power utilities, project implementation, public sector undertakings, rs 125, state public sector, supply company ltd